Institute for America’s Future co-director Robert Borosage appeared on the Tavis Smiley Show on October 31 to discuss the tax and economic policies advanced by Republican presidential candidates and their impact on middle- and low-income people.

He calls the flat-tax proposals of candidates Rick Perry and Herman Cain, as well as the regressive tax changes offered by candidate Mitt Romney, “reverse Robin Hood plans” that take from the poor in terms of reduced government services and higher taxes, and give to the rich in the form of a lower overall tax burden. These plans come “at a time in which we’re seeing extreme inequality and concentrated wealth we haven’t seen since before the Great Depression.”

The flat-tax plans are particularly egregious, Borosage tells Smiley. In the case of Perry, his plan “eliminates taxes on wealth” and slashes government revenues by $5 trillion over 10 years, a deficit that has to be made up by a 25 percent cut in government spending, including “deep cuts in the basic promises we make to working Americans about their retirement.”

Cain’s plan “is the worst,” Borosage says, because it would among other things impose a 9 percent national sales tax on top of the state and local taxes people pay on consumer goods. Because the lower the income a person makes the higher the percentage of that income is devoted to spending on consumer items, that means the Cain plan would fall the hardest on low-income and middle-income people.

Borosage also raises concerns about “a financialization of our economy that is having really disastrous effects on … our ability to ensure that the strength of our democracy, which is a strong middle class, is sustained.” Smiley responds, “It’s not just that our economy is challenged by those kinds of numbers, but it’s democracy as we know it. Some people might call that hyperbolic, but I don’t. … I don’t think the democracy can sustain itself long term with the kind of numbers you just laid out.”

Recent Stories by Robert Borosage

Hillary Clinton has opened a "conversation" about what she calls "quarterly capitalism," the perverse incentives that lead corporations to focus on the short-term over the long. Her reforms, however, don't match her rhetoric

Yesterday, thousands of federal workers – led by Senate cafeteria workers – walked off their jobs to demand a living wage, decent benefits and union. Sen. Bernie Sanders joined them, as pressure builds on President Obama to act.

Today is the fifth anniversary of the passage of Dodd-Frank, the complicated legislation designed to reform Wall Street after it blew up the economy. With finance still bloated, much more needs to be done.

About Robert Borosage

Robert L. Borosage is the founder and president of the Institute for America’s Future and co-director of its sister organization, the Campaign for America’s Future. The organizations were launched by 100 prominent Americans to develop the policies, message and issue campaigns to help forge an enduring majority for progressive change in America.
Mr. Borosage writes widely on political, economic and national security issues. He is a Contributing Editor at The Nation magazine, and a regular blogger at The Huffington Post. His articles have appeared in The American Prospect, The Washington Post,Tthe New York Times and the Philadelphia Inquirer. He edits the Campaign’s Making Sense issues guides, and is co-editor of Taking Back America (with Katrina Vanden Heuvel) and The Next Agenda (with Roger Hickey).